Leaders in 90 seconds

After 11 years at Stamford Bridge, Leaders 2019 broke new ground, literally, and moved to Twickenham Stadium, home of the England Rugby Football Union. Attending Leaders Sport Business Summit in London reminds me of the quote from Tom Hanks in Forrest Gump: “life was like a box of chocolates, you never know what you’re gonna get.” And this year proved to be no different.

Leaders always kicks-off with a few words of wisdom from James Worrall, CEO and Founder. Referencing a game of hide and seek with his children, James presented his five rules for success at Leaders. Rule number four: follow the leader.

The first leader was Andrea Agnelli, Chairman of Juventus and President of the European Club Association sharing his thoughts on the history and evolution of European football. Agnelli spoke about an industry now worth €19.3 billion of which 74% is generated by the ‘big five’ markets. The top 32 clubs in Europe benefit from the huge success of the UEFA Champions League to the tune of €2.04 billion per year. But, there is still a need to optimize club competitions according to Agnelli as the UEFA plan does not offer (enough) growth. There is no point comparing open and closed leagues, in reference to the American sport model. Strange that, as the NFL with 32 teams or franchises generate about $15 billion per year with $8.1 billion coming directly from the NFL. The solution according to Agnelli is to look 20 years ahead and create a platform, a sporting meritocracy to embrace teams like AFC Ajax, maintain a symbiosis with domestic leagues where everyone can have the dream of winning the UEFA Champions League…..Meanwhile the NFL is aiming to hit $25 billion by 2027.

“Never forget that only dead fish swim with the stream” was perhaps the most unusual and memorable quote I have heard in many years of attending Leaders. It could only be attributed to Jean-Claude Biver, Chairman of Hublot. Discussing his interest in Confucius, making his own cheese for clients, not recording any notes in boardroom meetings, liking Apple watches, having an advisory board with the average age of 16 years and the Ferrari syndrome all in the space of 30 minutes was as enlightening as entertaining. Perhaps most telling was his statement ‘the day we sell watches, we are dead’, presumably like a fish!

Pixar Animation Studios is home to some of the most famous characters in the movie business and beyond. According to Art Director, Deanna Marsigliese, “film production is a marathon, not a sprint”. With titles such as Toy Story, Monsters Inc. and the Incredibles, it would be hard to disagree. The secrets of success according to Marsigliese lies in three areas: intuition, authenticity of characters through genuine interactions with others and not just finding patterns, and meaning, or the interpretation of meanings. Delivering relevant content in two or three years’ time cannot be based on surveys as ‘people don’t know their own tastes’. As for the sports industry, the athletes are ready made characters with inspiring stories, irrespective of winning or losing. We need to share their struggles and humanize the players to develop deeper and more meaningful relationships. Rule number five: play the long game. 

The best a man can get are six words familiar to at least 1.1 billion people who start their day shaving with Gillette, according to CEO, Gary Coombe. As a brand that has become synonymous with sport through athletes, teams and leagues, Mr. Coombe is well placed to comment on changes in the business. Concerned with tribalism, Gillette is now focusing more on shared values as “consumers expect brands to contribute beyond product functionality”. Acknowledging the digital revolution, the best partners for Gillette are those who can provide a yearly platform or generate content all year round from a range of activities such as the NFL, EPL or UCL. Episodic properties have less impact for a brand that needs to remain agile and translate a connection with the opportunity to purchase. Hence future interest in streamers and platforms such as twitch, eSports, women’s sport, internationalization and the shift from mass one-to-one marketing to connecting on an individual level. And a close shave. Rule number two: look for brokers of knowledge.

Esports is an established player at Leaders for a number of years. Following impressive growth in gamers, prize funds, events and downloads of new games up to 100 million per month, the tone has changed. Experts suggest there are commercial challenges with monetization, especially in the media arena. Pro sports monetize an average of $15 to $40 per fan compared to $2 to $3 for eSports. Few eSports teams are profitable and according to some insiders, eSports is simply a marketing function for gaming. Can eSports learn from traditional sports and franchises like the NBA under the leadership of David Stern? Fans should remember that Stern served 30 years and it was quite a while before franchises that were selling for less than $100 million reached current day valuation of $2 billion. Rule number three: you need a plan. 

Delivering a closing presentation at a conference is never easy unless you are Alex Jenkins, Editorial Director of Contagious. If the content of Alex’s presentation did not include something you have never heard before, you are in the minority. From US pedestrian deaths to the Wizard of Oz, ASCI Red and Coopers Law, natural language skills and Siri, Game Theory, Kanye West and McDonalds, Pedigree dog food and the selfie-stick are just some of the topics woven into 30 minutes of mind bending stories. Jenkins follows the same approach with a business learning attached to each story. As unlikely as it might seem, I can still recall Alex in 2013 and the BGH Quick Chef (you had to be there!). I still use some of the learnings from Alex, speakers and delegates I met since Leaders started in 2008. It would be easy to dismiss some of the subjects presented as not having any value to the sport business. And that is why rule number one is equally important: don’t rule anyone out….

See you for more ‘chocolates’ at Leaders 2020.